“I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.”

Where it stands

Funding was named when it was announced, but it is not yet in an Estimates line. A promise counts as funded only once a Budget, Spending Review or Estimates allocates the money, so this card stays at In plan. Earlier caps for context: a £2 cap ran in England outside London from January 2023 under the previous government; it rose to £3 in January 2025, and Spending Review 2025 (11 June 2025) extended the £3 cap to March 2027 (sources below).

What has happened

1. Jul 2026PM announces a £2 cap on single bus fares from 1 January to 31 December 2027, backed by £400m of extra funding, Promised
2. Jul 2026Written statement to Parliament confirms the scheme and names the funding: £400m extra, from reprioritising DESNZ's budget, In plan evidence
3. Jan 2027Due to start, Deadline

About the cost

Year shown: 2027, the only year of the cap (1 January to 31 December 2027); central figure only. The government says the cap is backed by £400m of extra funding. Its press release puts the total at £454m including funding for the devolved governments, paid through the Barnett formula. Neither source says whether the £400m is the full cost of the cap or the extra over the £3 cap it replaces, and no independent costing has been published. Low–high is an editorial ±10% because the source gives a central figure only.

• Written statement to Parliament: £2 bus fares from January 2027
• Press release: Cheaper travel for millions with a third off fares

More detail

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